Tax-paying providers lose 21%, organizations say

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Friday, June 26, 2020

WASHINGTON - AAHomecare has joined 17 other health care organizations in sending a letter to Congress asking them to fix a tax penalty embedded in the CARES Act.

The organizations say, without a correction, tax-paying health care providers lose at least 21% of the benefit of relief funds related to the coronavirus pandemic.

“Clawing back one-fifth of the CARES Act relief will only magnify pressures for the HME community and other health care providers,” said Tom Ryan, president and CEO of AAHomecare. “Congress has provided welcome relief to help offset revenue losses and higher costs that the entire health care continuum is currently experiencing. Even so, many providers are still facing severe financial impacts as a result of the crisis.”

The coalition is asking Congress to ensure: that Provider Relief Funds and similar funding provided in response to COVID-19 are not taxable; and that entities receiving these funds maintain tax deductions attributable to these funds.

The coalition is made up of AAHomecare and these health care organizations:

Ambulatory Surgery Center Association
American Academy of Family Physicians
American Academy of Physical Medicine and Rehabilitation
American Association for Homecare
American Association of Nurse Practitioners
American College of Physicians
American Dental Association
American Hospital Association
American Medical Association
American Nurses Association
American Occupational Therapy Association
American Optometric Association
American Physical Therapy Association
Federation of American Hospitals
National Association for Behavioral Healthcare
National Hospice and Palliative Care Organization
Premier Healthcare Alliance
Private Practice Section of the American Physical Therapy Association